Fixed Income

UNIVERSE SELECTION AND FILTERING

Customization of the universe according to the specific needs.

Application of initial filters to arrive at a final universe.

RELATIVE ANALYSIS AND ISSUER CHECK

Quantitative analysis focusing predominantly on the bonds' relative attractiveness.

Qualitative focus on the financial health of the issuer.

SELECTION AND MONITORING

In this phase, a final decision is taken and the monitoring process begins.

UNIVERSE & FILTERS

OUR HOLISTIC APPROACH

QUANTITATIVE

Liquidity Test:
Evolution of free cash flow generation, according to internal model

Relative Valuation vs Own History:
Current swap spread relative to historical

Relative Valuation vs Derivatives Market:
Measuring the difference between the CDS and the swap spread

Ranking Against Peers:
Delta swap spread higher or in line with historical average

QUALITATIVE

Leverage Trend

Free Cash Flow generation

Rating Drift and Outlook

EBITDA Margins

Bond-friendly Policies

Our investment process encourages collective thinking rather than individual decision-making, taking advantage of the numerous synergies present in our ecosystem, and combines quantitative methods and human talents to uncover long-term investment opportunities.

Bond Selection & Monitoring

When an issuer is approved following the described steps, we select the most attractive bonds on the issuer curve, based on price/yield and duration.